Post by IAMCAPER on Jan 20, 2006 8:45:49 GMT -4
CFL franchises will have a new set of rules to play by this season.
CFL commissioner Tom Wright and Calgary Stampeders owner Ted Hellard unveiled details of the new 14-part cap Wednesday, a day after league governors ratified the agreement by a 7-2 margin during meetings in Scottsdale, Ariz. The step-by-step disclosure was indeed surprising, given the league's reluctance to do so in the past.
"This new system is designed for the longterm," Wright said. "We expect it to survive all of us . . . and ensure economic stability for our clubs."
The highlight of the agreement is the $3.8-million cap, which is a huge increase from the $2.6 million teams were supposed to have operated under last year. However, the general thought throughout the CFL was that all nine teams went over the cap in 2005, a fact Hellard confirmed during a conference call.
Hellard said governors reached the $3.8-million mark after learning that clubs spent an average of $3.75 million on player salaries last year.
"It wouldn't be unfair to disclose that the spread between the top and bottom was $700,000," Hellard said.
The Stampeders owner also said a minimum salary cap for CFL teams is still being negotiated.
CFL governors will re-examine the cap issue in January 2007 and could then decide whether to increase or decrease the amount or keep it at $3.8 million.
However, the CFL presently has no plans to either publicly identify teams that breach the cap or divulge by how much they were over. The league also won't make its player salaries public.
Getting league governors to agree to a salary management system is indeed a huge feather in Wright's cap. Last year, he approached the board about a multi-year contract extension, but was turned down and given only one more year with no raise. Leading up to these meetings, it was generally accepted that Wright's fate was tied to the cap, that if Wright couldn't convince the board to accept one, then he would merely be a lameduck commissioner.
But with support from seven of the nine governors - B.C.'s David Braley and Montreal's Bob Wetenhall are believed to have voted against the cap - it would seem Wright could approach the board again about another contract extension. Wright's present deal expires after the 2006 Grey Cup in November in Winnipeg.
"I believe the new salary management system for the league and my situation are completely unrelated," Wright said. "There is no linkage."
Hellard agreed.
"We were all able to put aside all the political issues and focus on what really mattered," he said.
Teams who finish the season $100,000 over the cap will be fined $1 for each dollar they're over. For those between $100,000 and $300,000 over, the fines increase to $2 for each dollar over along with a first-round draft pick. Teams exceeding the cap by $300,000 or more will be fined $3 for each dollar over and also lose a first and second-round pick.
The CFL will expect its member clubs to adhere to the new cap this year but won't begin enforcing payment of fines till next season.
"We're in the middle of the negotiating season and many clubs have already signed player contracts," Hellard said. "It would be pretty unrealistic to tell those teams now that we will implement a new system."
Salaries paid to coaches and scouting staffs aren't included under the present cap but Hellard said governors will re-examine those issues at future meetings.
Under this new agreement, CFL teams will have to sign papers fully disclosing their player salaries, bonuses and any side deals involving such perks as cars and living quarters. The league will also hire compliance officers with auditing backgrounds who will have full access to team records.
Wright said that enforcing the salary cap will roughly cost the CFL $200,000 more a year now. Compare that, though, to the NFL, which reportedly spends in access of $20 million US annually enforcing its very rigid salary cap.
"The reality is we have to put forward the best system that we can with rather limited resources," Hellard said. "The CFL is not the NFL.
"We don't have a $20-million budget to run an enforcement program."
The CFL will also offer financial rewards to players who successfully inform the league about teams having not disclosed any salaries or side deals.
Teams that don't disclose side deals will be penalized five per cent of league distribution money. A second offence will result in a 10 per cent penalty, with that increasing to 20 per cent on the third occasion.
The CFL also boosted active rosters from 40 players to 46. Teams can have 42 players dressed for each game - again up from 40 - with the extras being one Canadian and a designated import.
The other four players will be those who have minor injuries or are healthy scratches. In past years, teams put those players on the one-game injured list as a way of hiding them from the cap. Now, if a player is hurt, he is placed on a four-game injured list, meaning he's out at least four games and his salary counts against the cap.
Players who are seriously injured can continue to go on the nine-game list and don't count towards the cap.
Other elements of the cap include:
- CFL teams will be allowed to sign up to 75 players during the off-season but can only have 68 at the start of training camp.
- CFL teams won't have to officially declare their rosters until three hours before kickoff instead of 48 hours.
- CFL trade deadline has been moved up to the 12th week of the regular season (usually early September) instead of later in that month.
- Future considerations in trade must consist of either cash or draft picks, not players. Compliance officers will also be empowered to investigate CFL deals.
- A central repository of player salary information as well as player-agent contract requirements will be set up for senior league and club officials.
Also, practice rosters will now be called development rosters and consist of seven players instead of six. At least two of those spots must go to Canadian-born players - including one for a non-import who is in his draft year.
The development roster will be increased to 12 players when NFL teams begin their cuts to allow CFL teams to bring those players in for a look over a 30-day period, After that, teams must reduce their development back to seven players.
"This salary management system goes well beyond a fixed expenditure cap," Wright said. "It is a fundamental element to the health of our league . . . and changes the prospects of the CFL going forward."
CFL commissioner Tom Wright and Calgary Stampeders owner Ted Hellard unveiled details of the new 14-part cap Wednesday, a day after league governors ratified the agreement by a 7-2 margin during meetings in Scottsdale, Ariz. The step-by-step disclosure was indeed surprising, given the league's reluctance to do so in the past.
"This new system is designed for the longterm," Wright said. "We expect it to survive all of us . . . and ensure economic stability for our clubs."
The highlight of the agreement is the $3.8-million cap, which is a huge increase from the $2.6 million teams were supposed to have operated under last year. However, the general thought throughout the CFL was that all nine teams went over the cap in 2005, a fact Hellard confirmed during a conference call.
Hellard said governors reached the $3.8-million mark after learning that clubs spent an average of $3.75 million on player salaries last year.
"It wouldn't be unfair to disclose that the spread between the top and bottom was $700,000," Hellard said.
The Stampeders owner also said a minimum salary cap for CFL teams is still being negotiated.
CFL governors will re-examine the cap issue in January 2007 and could then decide whether to increase or decrease the amount or keep it at $3.8 million.
However, the CFL presently has no plans to either publicly identify teams that breach the cap or divulge by how much they were over. The league also won't make its player salaries public.
Getting league governors to agree to a salary management system is indeed a huge feather in Wright's cap. Last year, he approached the board about a multi-year contract extension, but was turned down and given only one more year with no raise. Leading up to these meetings, it was generally accepted that Wright's fate was tied to the cap, that if Wright couldn't convince the board to accept one, then he would merely be a lameduck commissioner.
But with support from seven of the nine governors - B.C.'s David Braley and Montreal's Bob Wetenhall are believed to have voted against the cap - it would seem Wright could approach the board again about another contract extension. Wright's present deal expires after the 2006 Grey Cup in November in Winnipeg.
"I believe the new salary management system for the league and my situation are completely unrelated," Wright said. "There is no linkage."
Hellard agreed.
"We were all able to put aside all the political issues and focus on what really mattered," he said.
Teams who finish the season $100,000 over the cap will be fined $1 for each dollar they're over. For those between $100,000 and $300,000 over, the fines increase to $2 for each dollar over along with a first-round draft pick. Teams exceeding the cap by $300,000 or more will be fined $3 for each dollar over and also lose a first and second-round pick.
The CFL will expect its member clubs to adhere to the new cap this year but won't begin enforcing payment of fines till next season.
"We're in the middle of the negotiating season and many clubs have already signed player contracts," Hellard said. "It would be pretty unrealistic to tell those teams now that we will implement a new system."
Salaries paid to coaches and scouting staffs aren't included under the present cap but Hellard said governors will re-examine those issues at future meetings.
Under this new agreement, CFL teams will have to sign papers fully disclosing their player salaries, bonuses and any side deals involving such perks as cars and living quarters. The league will also hire compliance officers with auditing backgrounds who will have full access to team records.
Wright said that enforcing the salary cap will roughly cost the CFL $200,000 more a year now. Compare that, though, to the NFL, which reportedly spends in access of $20 million US annually enforcing its very rigid salary cap.
"The reality is we have to put forward the best system that we can with rather limited resources," Hellard said. "The CFL is not the NFL.
"We don't have a $20-million budget to run an enforcement program."
The CFL will also offer financial rewards to players who successfully inform the league about teams having not disclosed any salaries or side deals.
Teams that don't disclose side deals will be penalized five per cent of league distribution money. A second offence will result in a 10 per cent penalty, with that increasing to 20 per cent on the third occasion.
The CFL also boosted active rosters from 40 players to 46. Teams can have 42 players dressed for each game - again up from 40 - with the extras being one Canadian and a designated import.
The other four players will be those who have minor injuries or are healthy scratches. In past years, teams put those players on the one-game injured list as a way of hiding them from the cap. Now, if a player is hurt, he is placed on a four-game injured list, meaning he's out at least four games and his salary counts against the cap.
Players who are seriously injured can continue to go on the nine-game list and don't count towards the cap.
Other elements of the cap include:
- CFL teams will be allowed to sign up to 75 players during the off-season but can only have 68 at the start of training camp.
- CFL teams won't have to officially declare their rosters until three hours before kickoff instead of 48 hours.
- CFL trade deadline has been moved up to the 12th week of the regular season (usually early September) instead of later in that month.
- Future considerations in trade must consist of either cash or draft picks, not players. Compliance officers will also be empowered to investigate CFL deals.
- A central repository of player salary information as well as player-agent contract requirements will be set up for senior league and club officials.
Also, practice rosters will now be called development rosters and consist of seven players instead of six. At least two of those spots must go to Canadian-born players - including one for a non-import who is in his draft year.
The development roster will be increased to 12 players when NFL teams begin their cuts to allow CFL teams to bring those players in for a look over a 30-day period, After that, teams must reduce their development back to seven players.
"This salary management system goes well beyond a fixed expenditure cap," Wright said. "It is a fundamental element to the health of our league . . . and changes the prospects of the CFL going forward."